Welcome to the second part of Price Action Setups For The Week Beginning. Yesterday we were talking about AUDJPY, EURUSD, GBPUSD and XAUUSD – you can find the article here. And today we are going to look closely at such currency pairs as CADJPY, EURAUD, GBPJPY and USDCAD. So let’s start!
The currency pair is in a dynamic downward trend, but the last sessions were mainly focused on correction, which stopped on Friday at 21 EMA and resistance line. Looking at lower TF would be helpful to find a good sell signal.
On H4 chart we can see a pin bar that formed and the Friday closure is above the minimum. As usual, such setup can be traded in 3 possible ways: sell stop below and SL above the pin bar, a sell stop below the minimum and SL at 50% abolition and buy stop at 50% abolition with SL under the candle. The choice depends on trader’s preferences.
On Thursday a buy signal appeared in the form of a pin bar candle near support line. Currently, traders waiting for breaking through its maximum should open long positions. People waiting of 50% correction should wait a little more. Undoubtedly the pair can bring further increases and the signal is quite clear.
After overtaking the support line at 168.30, currency pair dropped significantly. However, this week saw increases that have led the price in the vicinity of the previous support (which now is resistance). Additionally, the 21 EMA strengthens the level. In the event of a sell signal short positions can be considered, in line with current trend.
Pair that was many people type in terms of becoming a 2014 star is now in downward correction. On Friday there was a strong stop in that movement and dynamic reflection. It happened after the the re-challenging the 21 EMA and support zone. If you want to search for buy signals just go to lower intervals (TF).